S 5513: Domestic Manufacturing Revitalization Act of 2026

S 5513 in plain English: This bill would create tax credits for U.S. manufacturers of personal protective equipment (PPE) and medical equipment made domestically. The credits vary by product, ranging from $0.05 per medical glove to $250 per ventilator or other major medical equipment.

Stated purpose

This bill aims to create a pilot program under Medicare that encourages certain hospitals to buy at least 40 percent of their personal protective equipment and medical consumables from U.S. domestic manufacturers, in order to strengthen domestic supply chains for medical products.

Key points

• Creates a $0.25 per-unit tax credit for domestically made N95 respirator masks
• Provides a $0.10 per-unit credit for surgical masks and $0.05 per-unit credit for medical gloves
• Offers a $0.50 per-unit credit for surgical gowns made in the U.S.
• Provides a $250 per-unit credit for domestically manufactured ventilators or other major medical equipment

Arguments supporters make

• The COVID-19 pandemic exposed how dangerous it is to rely on foreign countries for critical medical supplies like PPE; this bill builds a more secure domestic supply chain so hospitals aren't left short during future crises.
• By rewarding hospitals that buy American-made medical goods, the bill supports U.S. manufacturing jobs and helps rebuild industrial capacity in the medical sector.
• The pilot program structure lets policymakers test and adjust the approach — including relaxing the 40% requirement during emergencies or supply disruptions — before any permanent nationwide rollout.

Arguments opponents make

• Domestic PPE and medical consumables often cost more than imported alternatives, so hospitals that comply may face higher operating costs that could ultimately be passed on to patients or drive up overall healthcare spending.
• Forcing hospitals to buy from a narrower set of suppliers could reduce competition, limit product choices, and potentially compromise quality or availability — especially for smaller or rural hospitals with less purchasing power.
• The reimbursement cuts that persist even after the pilot program ends could permanently penalize hospitals that struggled to find qualifying domestic suppliers, creating lasting financial harm regardless of good-faith efforts.

Tradeoffs

Strengthening domestic medical supply security comes at the potential cost of higher procurement expenses for hospitals and increased federal spending on reimbursements; the bill trades short-term efficiency and lower costs from global sourcing for long-term supply chain resilience, with that burden falling unevenly on hospitals that must shift purchasing habits or absorb Medicare payment penalties.

Current status in Congress: In committee.

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